Massive leverage in Catamaran play

optionMONSTER's Heat Seeker market scanner detected an unusual bullish three-way trade in the pharmacy-benefits company, already up more than 1,600 percent in the last 4-1/2 years.

The strategy involved buying the July 52.50 calls for $4.20, while the July 47.50 puts were sold for $2.50 and the July 60 calls were sold for $1.60. An even 2,510 contracts traded in each, pushing total options volume to more than 6 times open interest at all three strikes.

It cost just $0.10 to open the position, which will earn a profit of 7,400 percent if the stock closes at or above $60 on expiration. It also faces potential losses to the downside because of the short puts . (See our Education section for more on the benefits and risk of selling protection.)

CTRX fell 0.71 percent to $51.85 yesterday and has been trending steadily higher since the market bottomed in late 2008 amid consistently strong earnings reports.

Total option volume was 6 times greater than average in yesterday's session, according to the Heat Seeker.